0370 270 6000

already registered?

Please sign in with your existing account details.

need to register?

Register to access exclusive content, sign up to receive our updates and personalise your experience on brownejacobson.com.

Privacy statement - Terms and conditions

a landlord’s service charge certificate was conclusive as to the sums payable by a tenant under a lease

16 November 2020

The Court of Appeal has ruled that the wording of a service charge clause precluded a tenant from challenging the sums claimed by a landlord.

In this case, the tenant’s service charge bill was nearly eight times higher than the previous year. The tenant argued that certain costs should not have been included in the service charge calculation.

The lease stated that the landlord's certificate of the total cost and sum payable by the tenant was conclusive (in the absence of manifest or mathematical error or fraud). The High Court originally decided that this meant that the landlord’s certificate was conclusive as to the costs incurred in providing the services, but not as to whether the landlord was entitled to charge for such services in the first place. However, the Court of Appeal has overturned this decision and ruled that the landlord’s certificate was conclusive as to all elements which made up the “total cost” of the tenant’s bill.

This case shows that what has up until this decision been accepted as normal commercial practice is now a cause for concern for tenants. Tenants should therefore push back on service charge provisions which provide that a landlord’s certificate as to the amount of service charge due is conclusive. The tenant is likely to be left without a remedy if it disputes the landlord’s determination.

related opinions

Handing back an empty shell of a building did not fulfil a vacant possession break condition

Break rights have proved a fertile source of litigation over the last few years. Courts have consistently required strict compliance with the terms of those rights.

View blog

Retail ATMs and business rates: clarity at last!

Judgement has been handed down for the seminal case of Cardtronics UK Ltd and others (Respondents) v Sykes and others (Valuation Officers) (Appellants) [2020] UKSC 21.

View blog

Retail woes extending beyond the property sector and into financial markets

Some commentators had anticipated that persisting retail sector challenges might disrupt more than the make-up of the high street or commercial property negotiations between landlords and tenants.

View blog

Retailers and landlords, are your commercial leases future-proof?

The last two weeks have seen yet another flurry of announcements regarding big high street names including Thomas Cook, Argos, Karen Millen and Coast.

View blog

mailing list sign up



Select which mailings you would like to receive from us.

Sign up